Vietnam: What is an enterprise that combines economics with national defense and security?

Vietnam: What is an enterprise that combines economics with national defense and security? (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. What is an enterprise that combines economics with national defense and security?

According to Article 4 of Decree 16/2023/ND-CP, an enterprise is defined as an enterprise combining economics with national defense and security, ensuring the following conditions simultaneously:

- Being an enterprise in which the State holds more than 50% of the charter capital or the total number of shares with voting rights and the Ministry of National Defense or the Ministry of Public Security exercises the right to represent the state owner in the enterprise.

- Being assigned by the Ministry of National Defense or the Ministry of Public Security directly or through functional agencies or focal units of the Ministry of National Defense or the Ministry of Public Security the task of manufacturing and supplying defense and security products and services; performing national defense and security tasks to meet regular or unexpected requirements and tasks of defense and security;

Implement investment projects related to national defense secrets, important national defense tasks, and investment projects in areas with key positions in defense and security.

2. Rights and obligations of enterprises combining economics with national defense and security in Vietnam

Enterprises combining economics with national defense and security have the rights and obligations specified in Article 9 of the Law on Enterprises and provisions in Clause 2, Article 5 of Decree 16/2023/ND-CP, specifically as follows:

- To manage assigned resources to perform the task of combining economics with national defense and security according to current regulations.

- To comply with the laws and regulations of the Ministry of National Defense and the Ministry of Public Security on international cooperation when performing activities associated with foreign organizations and individuals to perform the task of combining economics with national defense and security.

- To have rights and obligations of enterprises specified in Article 7, Article 8 and other relevant provisions of the Law on Enterprises.

- To account and offset expenses according to the prices prescribed by the law on bidding or collect fees for using services according to the regulations of competent state agencies.

- To be guaranteed the appropriate product and service delivery time to recover the investment capital and make a reasonable profit.

- To provide products and services in sufficient quantity and quality within the committed time limit at prices or charges set by competent state agencies.

- To ensure fair and favorable conditions for customers.

- To take responsibility before the law and customers for the quantity, quality, supply conditions, prices, and charges of products and services provided.

3. Policies for enterprises combining the economy with national defense and security in Vietnam

Enterprises combining the economy with national defense and security are entitled to the following policies:

- To enjoy incentives on land rent, land use levy, and land use tax for the land area assigned to manage and use in service of national defense and security tasks in accordance with the law on land, tax, and other relevant laws.

- To be allocated budget and other resources by the State to ensure expenditures according to prescribed norms, including:

Expenses for annual military equipment, demobilization, service, and resignation according to the current regime for officers, professional soldiers, defense workers, defense officials, non-commissioned officers, public security workers, and cipher workers;

Salary payments, social insurance contributions during the period of preparation for retirement according to the current regime for officers, professional soldiers, defense workers, defense officers, public security workers, and people doing cipher work.

Enterprises shall calculate deductible expenses when determining their taxable income in accordance with the Law on Corporate Income Tax and guiding documents for operating expenses of the enterprise and expenditures on military service, national defense, security, and military-civilian relations according to plans and tasks assigned by the Ministry of National Defense or the Ministry of Public Security directly or through specialized agencies or affiliated focal units.

(Clause 1, 2, Article 8 of Decree 16/2023/ND-CP)

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